Yes to the Fastweb-Vodafone merger: the presidency of the Council of Ministers gave the green light for the acquisition of Vodafone Italia by Swisscomwhich in our country controls Fastweb, acquired in 2007. The approval came without objections, as Swisscom itself announced: “Following the announcement of the acquisition of Vodafone Italia released on 15 March 2024, Swisscom informs that the Italian Presidency of the Council of Ministers approved the acquisition without reservations, in the exercise of golden power”.
According to the agreement reached in recent months Swisscom will buy 100% of Vodafone Italia for 8 billion euros, with the aim of integrating it with the Italian subsidiary Fastweb.
Fastweb-Vodafone, yes from the Government
The Presidency of the Council of Ministers, continues the Swisscom note, confirms that “the notified operation does not cause a threat of serious damage to national interests and that, therefore, the conditions for the exercise of the special powers referred to in the article 2 of legislative decree no. 21 of 2012”.
The acquisition of Vodafone Italia is proceeding in line with the expected timing. Completion of the transaction is still subject to additional regulatory and other customary approvals and is expected to occur in first quarter 2025.
The golden power legislation reserves to the Italian Government special powers to intervene in certain transactions, investments or corporate resolutions that could compromise or prejudice Italy’s essential public interests, allowing it to assert its veto or impose special conditions and requirements.
The newco: convergent, retail and wholesale operator
Economies of scale, more efficient cost structure and significant synergies will enable newco to generate a high value for all stakeholdersOf support investments and offer innovative convergent services at competitive prices, improving performance and the experience for customers in all market segments, highlighted Fastweb in the note released on March 15th, at the time of the signing of the binding agreements between Swisscom and the British Vodafone Group.
“The new company will be more commercially resilient, thus ensuring sustained levels of long-term investment in the best fixed and mobile network infrastructures and innovationhelping to bridge the digital divide and accelerate the country’s digital transformation. The transaction will create an operator with convergent assets and the appropriate size to compete effectively in the market and increase the level of competition in the country”. And the newco “will also continue to make its high-quality fixed and mobile infrastructures available to third parties for wholesale access services”.
Regarding mobile and broadband customers will have access to a combination of fiber and 5G based solutions. Fastweb solutions in the cybersecurity and of theartificial intelligence in mix with Vodafone Italia’s mobile infrastructures, will make available to business customers a broader portfolio of connectivity and ICT services through a single access point.
Digital transformation in Italy, ahead with investments
“This transaction marks a turning point for Fastweb and will generate significant value for all stakeholders – he commented in March the CEO of Fastweb, Walter Renna – Thanks to the superior quality of mobile and fixed infrastructures, the convergent operator resulting from the operation will be able to offer high-performance connectivity and innovative services to all segments of the market. The newco will contribute to the evolution of this strategic sector with significant investments in fiber and 5G, innovative ICT services and infrastructure security, thus enabling rapid digital transformation of families, businesses and public administration”.
The newco and the Vodafone Group will enter into some transitional and long-term service agreements, including a licensing agreement that allows the use of the Vodafone brand in Italy for a maximum of 5 years after the closing.
“Swisscom has been operating successfully in Italy since the acquisition of Fastweb in 2007 – he underlines Christoph Aeschlimann, CEO of the Swiss Group -. Over this period we have generated a solid track record of investment and growth in Italy. The industrial logic of this merger is very solid. Fastweb and Vodafone Italia represent an ideal combination to generate high added value for all stakeholders. As a result, residential and business customers will benefit from the most comprehensive offering. Swisscom will also be strengthened as a whole, allowing us to continue to make significant investments in the Swiss and Italian markets.” Over the last ten years, Fastweb has recorded growth of over 50% in terms of customers, turnover and adjusted EBITDA.
Vodafone completes restructuring of European operations
“This is the third and final step in the restructuring of our European operations. From now on, our companies will operate in growing telecommunications markets – where we have strong positions – enabling us to deliver more predictable and stronger growth in Europe. This is accompanied by ours acceleration in B2Bas we continue to gain share in an expanding digital services market,” he highlights the CEO of the Vodafone Group, Margherita Della Valle.
“The sale of Vodafone Italia to Swisscom creates significant value for Vodafone and ensures that the company maintains its leading position in Italy, built through the dedicated commitment of our colleagues in serving our customers for many years. Our transactions in Italy and Spain will bring in $12 billion in immediate cash proceeds and we intend to return $4 billion to shareholders through buybacks, as part of our broader capital allocation review.”
